CCF's largest shareholder, Dutch financial giant ING, which has been stalking the bank for months, has promised to accept the bid, which was unanimously accepted at a CCF board meeting on Saturday.
"If the outcome of our offer for CCF is successful we shall have a unique opportunity to build a platform in the eurozone, where we have been under-represented," said HSBC chairman John Bond.
CCF and HSBC said in a statement that the British bank was offering either 150 euros in cash for each CCF share, or 13 HSBC shares per CCF share - equivalent to 160 euros per share.
No taboos broken
The cash bid valued CCF at 11.08bn euros (£7.31bn).
CCF is the first major French bank to be acquired by a foreign bank.
But its president, Charles de Croisset, said it was breaking no taboos by accepting the bid, as three-quarters of the shareholders were already non-French.
"It is truly a very beautiful offer," he said on Sunday.
"We were independent and we believed in our future, but we are also realists.
"Given that we were to lose our independence, we
wanted a friendly offer and a deal that would provide as good a
future for our shareholders as for our employees, our clients and
the position of Paris."
CCF's largest shareholder, Dutch financial giant ING, which has been stalking the bank for months, has promised to accept
the bid, which was unanimously accepted at a CCF board meeting on Saturday.
ING bid 137.5 euros a share for CCF last December but abruptly withdrew the offer, saying the bank's board had not reacted enthusiastically enough.
However, ING revived takeover speculation this month saying the offer would remain open until the end of May.
The HSBC deal still requires the approval of France's banking regulator, but is expected to go through in the second half of the year.
Consolidation continues
It represents the latest stage in the steady consolidation of the European banking industry - and the strongest move yet by a British bank to break into the 11-nation eurozone.
Mr Bond said HSBC had no other acquisition plans.
While it has only the eighth largest retail network in France with 650 branches, CCF is the most profitable bank, and has long been seen as attractive prey for any group wishing to expand in France.
It is expected that there could be some job losses from the deal, which is expected to produce 150m euros in cost savings by 2001.